An Update from Washington

by Congressman Bobby Bright

Providing Relief for a Struggling Economy

Over the past several weeks, I have traveled across the Second District during the August District Work Period. Through town halls, Congress on Your Corners, speaking to local clubs and organizations, and office hours, I have spoken to hundreds of constituents and will continue to do so before Congress returns to session on September 14th. In fact, by the end of this week, I will host my 10th town hall in the last four weeks.

When I speak with the people I represent, the overriding concerns are centered on jobs and the economy. Sadly, I could have said the same thing last summer, indicating that not nearly enough has been done to boost the economy and job prospects over the last 12 months.

Many people are concerned that the tax relief passed in 2001 and 2003, otherwise known as the Bush tax cuts, will expire at the end of the year. Unless action is taken to extend these tax rates, nearly all tax-paying Americans will see their taxes raised in 2011. This is unacceptable, especially as the economy remains in such an unstable and tenuous position.

Though many in Washington seem to have just woken to the idea that taxes are going to go up next year unless we do something, I took the lead as far back as January in calling for the 2001 and 2003 rates to be extended for at least two years as a way to ensure economic stability. Put simply, I believe a recession is not the time to raise taxes on small businesses and individuals.

There is widespread, bipartisan consensus for some of these tax breaks to be extended in the short term, which leads me to believe that action will be taken when Congress returns to session. It remains to be seen, however, to what degree the tax cuts will be extended. I will continue to push for a full extension because I believe our economy simply can’t sustain a tax increase, especially on many of the small businesses and investors who will spur economic growth.

Another area of concern as it relates to the economy is the housing market. One of the best indicators for economic success- as well as a root cause of our economic downturn- is home sales. After getting hit hard in 2008, there were some signs of growth in the housing market in 2009 and early 2010 thanks in part to the first-time homebuyer’s tax credit. However, as of June 30th, the tax credit is no longer in effect. Subsequently, July home sales were down by over 25% statewide compared to last year and even worse in other parts of the country. This is a troubling development and further questions how close we are to fully breaking out of this recession, especially considering mortgage rates are at historic lows.

Before the homebuyer’s tax credit- which provided an $8,000 tax credit to qualified homebuyers- ended, I sponsored legislation to extend the credit through the end of the year and even longer for military personnel deployed overseas who would otherwise miss out on the opportunity. Even though the credit has expired, recent housing data indicates that we need to seriously consider measures to boost the housing market, including reinstating the homebuyer’s tax credit in some form.

As is the case with extending the Bush tax breaks, I will be pushing for Congress to address the troubling signs in the housing market when we return to session. Though neither solution will completely solve our economic problems or put Americans back to work, I do believe they will help provide some economic stability in an otherwise unstable environment.

As I wrap up this week’s column, I wanted to let you know about something my office is doing to help people get back to work. On Thursday, September 2nd, we will host a Wiregrass Job Fair at the Ozark Civic Center from 1:00 – 5:00 p.m. More than 25 local businesses who will be hiring or expect to be hiring in the next month will be in attendance to meet with prospective employees. If you are currently unemployed or underemployed, I encourage you to attend. If you would like more information, please call my Dothan district office at 334-794-9680 or visit my website.

As always, if you have any questions, please do not hesitate to call our offices in Montgomery at (334) 277-9113, Dothan at (334) 794-9680, Opp at (334) 493-9253, or Ozark at (334) 445-4600. You can also visit the website at www.bright.house.gov to sign up for the e-newsletter. It is my great pleasure to serve you and the entire Second District of Alabama.

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